A model of a giant lobster marks the headquarters of Clearwater Fine Foods Inc., in Halifax, Wednesday, Oct. 19, 2005. Clearwater Fine Foods is being sold to Premium Holdings and a group of Mi’kmaq First Nations. THE CANADIAN PRESS/Andrew Vaughan

A model of a giant lobster marks the headquarters of Clearwater Fine Foods Inc., in Halifax, Wednesday, Oct. 19, 2005. Clearwater Fine Foods is being sold to Premium Holdings and a group of Mi’kmaq First Nations. THE CANADIAN PRESS/Andrew Vaughan

Mi’kmaq First Nations joining with Premium Brands to buy Clearwater Seafoods for $1 B

Mi’kmaq expect to hold Clearwater’s Canadian fishing licences within a fully Mi’kmaq-owned partnership

Premium Brands Holdings Corp. and a group of Mi’kmaq First Nations are buying Clearwater Seafoods Inc. for $1 billion, including debt.

The deal announced Monday would be the largest investment in the seafood industry by a Canadian Indigenous group and comes eight months after Halifax-based Clearwater said it was exploring a possible sale.

Clearwater shareholders would receive $8.25 per share which represents a 60.2 per cent premium to the average volume-weighted average price for the 20-day period preceding the strategic review announcement on March 5.

The transaction has received unanimous approval of Clearwater’s board and is subject to approval by Clearwater shareholders in January.

The Mi’kmaq First Nations coalition, led by the Membertou First Nation, and Premium holdings will each acquire half ownership of Atlantic Canada’s largest fishing company that was founded in 1976.

The Mi’kmaq expect to hold Clearwater’s Canadian fishing licences within a fully Mi’kmaq-owned partnership.

“This is a transformational opportunity for the Mi’kmaq to become significant participants in the commercial fishery through the investment in existing infrastructure, management expertise, and a global market presence.” stated Membertou First Nation Chief Terry Paul.

Paqtnkek, Pictou Landing, Potlotek, Sipekne’katik, and We’koqma’q have confirmed their intention to participate with Membertou and Miawpukek in the investment.

“I am very pleased to recommend this transaction. It represents great value for shareholders, leverages the expertise within the company while advancing reconciliation in Canada,” said Clearwater chairman Colin MacDonald.

“I am confident that this transaction will enhance the culture of diversity and sustainable seafood excellence that exists at Clearwater.”

Each of Clearwater’s directors, the CEO and chief financial officer, which control 63.9 per cent of outstanding shares, have entered into agreements to vote in favour of the transaction.

Premium Brands said it will raise $250 million of new equity capital from a $200-million bought deal public offering and a $50-million concurrent private placement with CPP Investments.

READ MORE: Mi’kmaq band finds buyer for portion of lobster catch after alleged blacklisting

The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

fishingIndigenous

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Penny Hart is calling on the community to help find her son Sean Hart who was last seen on Nov. 6 at a health institution in Saanich. (Devon Bidal/News Staff)
Search spreads for Saanich man missing from mental health facility for nearly a month

Family hopeful as possible sightings reported across Island and in Vancouver

The Sooke School District is actively looking for more bus drivers after they had to cancel a handful of bus routes in late November. (Black Press Media file photo)
Bus driver shortage cancels routes in Sooke School District

More drivers needed to accomodate expanding bus routes amid pandemic

Victoria’s Royal Jubilee Hospital took in two COVID-19 patients from Northern Health as part of a provincial agreement. (Black Press Media file photo)
Victoria hospital takes in two COVID-19 patients from Northern Health

Royal Jubilee Hospital takes patients as part of provincial transport network

Joe Robertson and Jack Amos ran the length of Vancouver Island, with the help of their van Pippi, raising more than $12,000 for 1Up Victoria Single Parent Resource Centre. (Photo submitted)
Greater Victoria pair finishes running length of Vancouver Island a day early

Joe Robertson and Jack Amos raised more than $12,000 for single parents

Island Health is expanding COVID-19 testing in Nanaimo with a new testing location at Vancouver Island University. (News Bulletin file photo)
Island Health issues apology over racist practices in health care system

Report by Mary Ellen Turpel-Lafond finds ‘widespread systemic racism against Indigenous people’

(AP Photo/Paula Bronstein)
POLL: Has COVID-19 changed your plans for the holidays?

The lights are going up, the stacks of presents under the tree… Continue reading

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of Dec. 1

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Provincial health officer Dr. Bonnie Henry updates B.C.’s coronavirus situation at the legislature, Nov. 30, 2020. (B.C. government)
Hockey team brought COVID-19 back from Alberta, B.C. doctor says

Dr. Bonnie Henry pleads for out-of-province travel to stop

B.C. Premier John Horgan on a conference call with religious leaders from his B.C. legislature office, Nov. 18, 2020, informing them in-person church services are off until further notice. (B.C. government)
B.C. tourism relief coming soon, Premier John Horgan says

Industry leaders to report on their urgent needs next week

BIG SALMON ranch in Washington State. (Center for Whale Research handout)
Non-profit buys Chinook ranch in hopes of increasing feed for southern resident killer whales

The ranch, which borders both sides of Washington State’s Elwha River, is a hotspot for chinook salmon

Natalie MacMaster and Donnell Leahy are inviting audiences into their home for ‘A Celtic Family Christmas’. (Submitted)
Natalie MacMaster coming to you through Cowichan Performing Arts Centre

Here’s your chance to enjoy the famed fiddler in an online show with her husband Donnell Leahy.

An 18-year old male southern resident killer whale, J34, is stranded near Sechelt in 2016. A postmortem examination suggests he died from trauma consistent with a vessel strike. (Photo supplied by Paul Cottrell, Fisheries and Oceans Canada)
“We can do better” — humans the leading cause of orca deaths: study

B.C. research reveals multitude of human and environmental threats affecting killer whales

An RCMP cruiser looks on as a military search and rescue helicopter winds down near Bridesville, B.C. Tuesday, Dec. 1. Photo courtesy of RCMP Cpl. Jesse O’Donaghey
B.C. Mountie, suspect airlifted by Canadian Armed Forces from ravine after foot chase

Military aircraft were dispatched from Comox, B.C., say RCMP

Most Read